By Kathryn Kretschmer-Weyland
February 13, 2012

City governments can protect the benefits programs their employees rely on while also curbing growing costs, thanks to a new partnership announced today between The U.S. Conference of Mayors and Colonial Life & Accident Insurance Company.

The partnership brings together mayors and other key leaders in cities of population 30,000 or more with specially trained Colonial Life benefits counselors to offer and help implement a cost-containment health benefits program centered around value-added services and supplemental insurance benefits. The program focuses on effective cost'saving strategies while preserving the value of employees’ benefits.

“That’s the beauty of this program,” said Conference of Mayors CEO and Executive Director Tom Cochran. “We’re focusing on cost'saving measures that could have a significant impact on the bottom line while minimizing the impact on employees. Mayors and their cities need a strong benefits program to obtain and retain the best employees. The solutions Colonial Life brings our members can help them continue to offer a stable benefits package in a more financially sustainable way.”

The Conference of Mayors selected Colonial Life for this partnership based on its long experience, proven track record of success in providing employee benefits in the public sector, and full'spectrum approach to cost containment through value-added services. The partnership is being rolled out nationwide beginning this month.

Like other employers, city governments have seen health insurance costs rise year after year. Continuing to absorb those cost increases without cutting benefits isn’t a sustainable long-term model, says Pat McCullough, Assistant Vice President and Public Sector Practice Leader for Colonial Life. “In today’s economy, most people recognize changes in benefits programs are inevitable, but many city governments aren’t taking advantage of the opportunities available to them. They’re more likely to be able to continue offering high-quality benefits if they find ways to make them more cost-effective.”

City governments nationwide collectively spend an estimated $30 billion a year on employee health benefits.1 A recent survey of government financial officers showed more than half saved at least 6 percent on their benefits during a two-year period by implementing cost-control strategies, and 40 percent saved more than 10 percent during that time period.2 Even a modest three percent annual savings on benefits costs would represent $900 million that could be redirected to prevent reductions in staffing and service levels.

If your city could use help containing benefit and benefit administration costs, contact Kathryn Kretschmer-Weyland with The U.S. Conference of Mayors at (301) 460-5251/ kweyland@usmayors.org or Jeannie Fanning at (240) 393-9672/ jfanning@usmayors.org, or Pat McCullough with Colonial Life at (803) 678-6980 or pmccullough@coloniallife.com.

Colonial Life & Accident Insurance Company is a market leader in providing insurance benefits for employees and their families through the workplace, along with individual benefits education, advanced yet simple-to-use enrollment technology and quality personal service. Colonial Life offers disability, life and supplemental accident and health insurance policies in 49 states and the District of Columbia. Similar policies, if approved, are underwritten in New York by a Colonial Life affiliate, The Paul Revere Life Insurance Company, Worcester, Mass. Colonial Life is based in Columbia, S.C., and is a subsidiary of Unum Group, one of the world’s leading providers of employee benefits. For more information, call Colonial Life at (803) 798-7000 or visit www.coloniallife.com.